The court’s announcement Monday capped a furious two-year legal battle in New Jersey over one of its biggest financial problems: the notoriously underfunded pension system for nearly 800,000 public workers and retirees.
The decision means that — unless New Jersey voters approve a constitutional amendment to guarantee pension funding — New Jersey governors and lawmakers have discretion over how much money to send to the troubled retirement funds every year. For the coming fiscal year, Christie has proposed a $34.8 billion budget with a $1.86 billion pension payment, around 40 percent of what state actuaries say is necessary.
Monday’s ruling left both sides digging in and defending their positions, with the governor’s office calling on the unions to work with Christie to “find a solution that is fair for all taxpayers” and the head of the New Jersey Education Association, the state’s largest teachers union, saying his organization will continue to work toward a constitutional amendment.
